American Apparel's Dov Charney: "There's Nothing I Have To Say Right Now"

dov337Photo: Courtesy of American Apparel.
Following Thursday's announcement that American Apparel's board of directors suspended the company's president and CEO, Dov Charney, with plans to terminate him in a month, Women's Wear Daily has more details surrounding his ouster.
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The decision came out of a 10-hour-long meeting in New York the day before, at which Charney was present (and presumably wearing more than a sock). One insider, building on an L.A. Times source's claims that Charney's dismissal "involved his personal conduct with women and poor judgement," told WWD that Charney "had dispatched certain litigation" unbeknownst to the board, likely to handle some sort(s) of sexual-harassment suits. "When the board looked into certain settlements that were not authorized, it became apparent that some duties could have been breeched by Dov," the insider said. Charney, for his part, told the trade, "There's nothing I have to say right now," sounding "relaxed." (Surely due to his comfy, poly-cotton crew neck/losing the company he founded in 1997.)
His departure could mean a sale, though WWD's spy says the company is focusing on a new management team; John Luttrell, executive vice president and CFO will serve as interim CEO. Nonetheless, Gap Inc., Urban Outfitters Inc., and PVH Corp. are reported to be interested, and any buyer would need to think about the "sweatshop-free, Made in USA" factory that comes with it. A second WWD insider explained that "Charney has overpaid the workers, and if the factory is adjusted so it is right-sized, that might cause the 7,000 employees there to unionize." Workers hoping to keep their jobs, and fair wages, could be a huge headache for whichever mass brand might take over.
You know, assuming they don't shy away from dealing with a brand that essentially enabled this NSFW clip of Charney dancing. Using "This Must Be the Place (Naive Melody)," as the soundtrack is a bit much.
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